Quantile regression and structural change in the Italian wage equation

Marilena Furno

Economic Modelling, 2013, vol. 30, issue C, 420-434

Abstract: A test for structural break based on quantile regressions (QR) reveals the impact of a break in the tails of the conditional distribution, unveiling an opposite behavior in the tails that balances at the mean and that cannot be found using OLS. By repeatedly computing the QR test it is possible to check for stability of the coefficients both over time and with respect to dichotomies in the explanatory variables, such as generations or regions. This provides evidence of a break in earnings i) over time, with wages decreasing in the latest period; ii) across generations, where young workers experience a decrease in returns to education; and iii) across regions, with an opposite pattern of earnings, unstable at the lower quantiles in the southern regions and unstable at the higher wages in the north-center area.

Keywords: Quantile regression; Structural break; Robustness; Test (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999312003069
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:30:y:2013:i:c:p:420-434

DOI: 10.1016/j.econmod.2012.09.031

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().